What to Bring to Your Real Estate Closing

Real estate closing marks the final stage in a property transaction, signifying the official transfer of ownership and settlement of financial obligations. This event brings together buyers, sellers, lenders, and closing agents to finalize the legal and financial aspects of the sale. Being prepared for closing helps ensure a smooth and efficient process.

Personal Identification

Valid government-issued photo identification is a requirement at a real estate closing. This verifies identity for official documents, many requiring notarization. Acceptable forms include a driver’s license, state-issued ID, or passport. Some lenders may request two forms of ID, such as a government-issued photo ID and a non-photo ID like a Social Security card.

If your ID name doesn’t match legal documents due to marriage or divorce, contact the closing agent or title company in advance. They may require supporting documentation, such as a marriage certificate or court order for a name change. An ID that does not meet legal standards can prevent notarization and delay closing.

Funds for Closing

Funds for closing require specific methods for secure and timely transfer. Personal checks are not accepted for large sums due to confirmation time and risk of insufficient funds. Certified funds are required, typically wire transfers or certified/cashier’s checks.

Wire transfers are a common and efficient method for large sums, offering speed and security. Obtain wire instructions directly from the title company or closing attorney. Verify these instructions through a secure method, like a phone call to a known number, as fraudsters often send fraudulent instructions via email. Wire transfers typically complete within one business day, but can take two to four business days if funds move through an escrow account. Initiate the wire transfer one to two days before closing to ensure timely arrival.

Certified or cashier’s checks are another accepted payment form, guaranteed by the issuing bank. These checks should be made payable to the title company or closing attorney, who will disburse funds. While secure, some closing agents limit cashier’s check amounts (e.g., $10,000-$50,000) and may prefer wire transfers for larger sums. Always confirm the preferred payment method and payee with your closing agent in advance.

Proof of Required Insurance Coverage

Proof of homeowners insurance is a prerequisite for mortgage transactions. Lenders require this insurance to protect their investment against damages like fire or storms. Without it, the loan cannot be funded, and closing will not proceed.

The required proof is typically the insurance “declarations page” or an “insurance binder.” The declarations page summarizes your policy, including policy number, coverage amounts, and effective dates. It must list the lender as an “additional insured” or “loss payee,” indicating their interest. The policy’s effective date should be on or before closing.

If the property is in a designated flood hazard area, flood insurance is also mandatory, typically requiring proof of a paid first year’s premium. Secure these policies in advance, often a few weeks prior, to meet lender requirements and avoid last-minute complications. This allows time to address discrepancies or additional requirements, such as sufficient coverage to rebuild the home.

Supporting Documents for Personal Reference

Bringing personal copies of key transaction documents provides a resource for review and cross-referencing. These documents are for your benefit and are not submitted to the closing agent. Having them accessible allows for immediate comparison against official documents presented for signature, ensuring accuracy and understanding of final terms.

The signed purchase agreement or sales contract outlines the agreed-upon terms of the property sale. For buyers, bring the Loan Estimate (initial estimate of loan terms and costs) and the Closing Disclosure (final loan terms and actual costs). Review these documents for discrepancies between the estimate and final figures.

Any addendums or counteroffers that modified the purchase agreement should be available for reference to ensure negotiated changes are reflected in the final paperwork. Copies of appraisal and inspection reports can be helpful for recalling property conditions or valuations. Any written agreements related to repairs or contingencies should be on hand to confirm their inclusion and execution in the closing documents.

Practical Items and Final Checks

Beyond legal and financial documents, a few practical items can contribute to a comfortable and organized closing. Although pens are usually provided, having your own pen can be useful. A notebook and pen are helpful for notes, questions, or details. Keep contact information for all relevant parties (real estate agent, lender, attorney, title company representative) available to expedite communication.

A final review of the Closing Disclosure before signing is important. This document details all financial aspects, including loan terms, interest rates, and closing costs. Reviewing it allows you to verify all information and ensure figures align with your expectations. Ask questions about any unclear terms or figures. Addressing questions before signing helps prevent issues or misunderstandings after the transaction. Bringing water or a snack can also be beneficial, especially if closing is lengthy.